Opening a business investing account helps manage company funds, diversify investments, optimize returns, and enhance financial growth while benefiting from professional management and potential tax advantages. Here Good Money Guide has compared, ranked and reviewed some of the best investing accounts for businesses.
Compare Business Investing Accounts
| Business Investing Account | Account Type | Key Features | Good For |
|---|---|---|---|
| Lightyear | Business Treasury Product | High interest rates (5.14% AER on GBP), no account management fees, access to 3,500+ international stocks and ETFs | Businesses with surplus cash |
| Interactive Brokers | Business Brokerage Account | Broad market access, professional trading environment, low fees | Traders seeking broad market access |
| Interactive Investor | Business Investment Account | User-friendly, investor protection up to £85k, low trading fees | Beginners, UK market focus |
| Saxo Bank | Business Trading Account | Great trading platform, solid research, investor protection | Investors, traders seeking research |
| Barclays | Business Investment Account | Low fees, solid background, investor protection up to £85k | Long-term investors |
| Fidelity International | Business Investment Account | Excellent for long-term investors, good mobile platform, investor protection up to £85k | Beginners, long-term investors |
| HSBC | Business Savings Account | Easy access to funds, competitive interest rates, tailored financial solutions | Businesses of all sizes |
| Lloyds Bank | Business Savings Account | Various credit options, competitive interest rates, easy access | Startups, small businesses |
| Barclays Business Banking | Business Savings Account | Competitive interest rates, easy fund access, online management | Small businesses, startups |
Our picks of the best investing accounts for businesses
❓Methodology: Our experts chose what we think are the best business investment accounts based on:
- Over 30,000 votes and reviews in the coveted Good Money Guide annual awards
- Our own experiences testing the company investment accounts with real money
- An in-depth comparison of the features that make them stand out compared to alternative investing platforms for businesses
- Our exclusive interviews with the business investment account company CEOs and senior management
Summary:
- Lightyear: Best business investing account 2024
- Interactive Investor: Best fixed fee business investing account
- AJ Bell: Best platform for low-cost investing for businesses
- Interactive Brokers: Best platform for businesses to invest internationally
Lightyear: Best Business Investing Account 2024
🏆Award Winner🏆
- Investments: Shares, ETFs, money market funds
- Minimum deposit: £1
- Account charge: £0
- Dealing fee: £1, €1, $1
Capital at risk
Lightyear won “Best Business Investing Account” in the 2024 Good Money Guide Awards as they have really simlified the process of openeing corporate investment accounts.
There are no fees to open, bank transfer into, withdraw from, or maintain a Lightyear business account and you can hold currency in either GBP, USD & EUR.
Plus, investing in ETFs is completely free of execution fees, and won’t be subject to conversion fees either if you hold money in USD, GBP or EUR.
But, if you do convert currency, Lightyear only charges an FX fee of 0.35%
Your business can also invest in high interest rate treasury products backed by BlackRock.
Lightyear Review
Name: Lightyear
Description: Lightyear is a new investment app that offers low cost investing in UK, European and US shares. The company was founded by one of the first Wise (Transferwise) employees, Martin Sokk with a similar objective of making investing as cheap and easy as possible.
Capital at risk.
Summary:
A very well-designed low-cost investing app with discounted FX charges, limit and recurring orders for investing in local and international markets.
Special Offer: Sign up with a promo code GOODMONEYGUIDE deposit at least £50 and get 10 trades for free. T&Cs apply. Capital at risk.
Pros
- Low-cost investing account
- Low FX fees of 0.35%
- International market access
Cons
- No ISA
- No SIPP
-
Pricing
(4.5)
-
Market Access
(4)
-
Online Platform
(4.5)
-
Customer Service
(4.5)
-
Research & Analysis
(3.5)
Overall
4.2Interactive Investor: Best Fixed Fee Business Investing Account
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £1
- Account charge: From £4.99 per month
- Dealing fee: £5.99
Capital at risk
Interactive Investor’s business account is suitable for large account balances as the monthly minimum charges (including the additional £30 to cover operational costs in maintaining services for Company Accounts and Trust Accounts) can eat into small account balances quickly.
However, if you business is investing more than £50,000 ii’s corporate account is an excellent one stop shop to invest your businesses surplus cash.
Interactive Investor Review
Name: Interactive Investor
Description: Interactive Investor or II as its known is one of the UK’s largest self-determined investor platforms. II can trace its roots back to 1995 and the startup floated on the London stock exchange back in the year 2000 before being bought by the Australian business Ample in 2002. Today, Interactive Investor is a owned by abrdn with assets under administration of more than £50 billion and 400,000 customers to whom II offers share trading and investment services including, ISAs SIPPs and share dealing, alongside research and analysis. Including model portfolios, selected funds and thematic investments.
Why we like them
Interactive Investor differs from other investment platforms as it charges a fixed account fee, rather than a percentage of the funds you have on account. Which, over time, could save you thousands in costs.
Pros
- Fixed account fees
- Easy to use
- Good research
Cons
- No Lifetime ISA
- Expensive for very small accounts
- No derivatives for hedging
-
Pricing
(4)
-
Market Access
(4)
-
Online Platform
(4)
-
Customer Service
(4)
-
Research & Analysis
(4)
Overall
4AJ Bell: Best Platform For Low-Cost Investing For Businesses
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £500
- Account charge: 0.25% annual charge
- Dealing fee: Shares £3.50 – £5, funds £1.50
Capital at risk
AJ Bell’s corporate share dealing accounts offers a lot more than just the ability to invest in other companies. Your business can also invest in over 2,000 funds, 450 investment trusts and thousands of ETFs that cover domestic and international sectors, themes and commodities.
Overall, AJ Bell’s business investing account is one of the cheapest and comprehensive around.
AJ Bell Review
Name: AJ Bell
Description: AJ Bell is an award-winning, low-cost online investing platform for UK DIY investors. Founded in 1995, AJ Bell has grown to become one of the UK’s leading investment platforms. Today, it has more than 440,000 customers and assets under administration (AUA) of over £150 billion.
Summary
AJ Bell is an excellent full-service stock broker that offers access to UK and international shares, bonds and funds with some of the lowest fees in the industry.
Pros
- Wide range of investments
- Low account costs
- Discounts for frequent investors
Cons
- High charge when you deal over the phone
-
Pricing
(4.5)
-
Market Access
(4.5)
-
Online Platform
(4.5)
-
Customer Service
(4.5)
-
Research & Analysis
(4)
Overall
4.4Interactive Brokers: Best Platform For Businesses to Invest Internationally
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £1
- Account charge: £0
- Dealing fee: Shares £1 – 0.05%
Capital at risk
If your business is serious about investing, Interactive Brokers is the sensible choice. IBKR offers one of the most advnaced trading platforms for corporate accounts ranging from SMEs to boutique, mini and large hedge funds.
Fees are low, there is a huge range of markets to invest in (both in the UK and in the US) and there is plethora of research and analysis to help you choose the right investments for your company.
Interactive Brokers Review
Name: Interactive Brokers
Description: Interactive Brokers is a major US online automated electronic broker company. The financial broker is listed on the Nasdaq Exchange with ticker IBKR. The firm operates in 150 electronic exchanges in 34 countries, and offers trading in 28 currencies. Interactive Brokers has more than 3.19 million institutional and retail customers.
Why we like them
Interactive Brokers is an exceptional trading platform that offers institutional-grade trading capabilities to private clients around the world. IBKR has some of the lowest trading and investing fees and the widest market range in the industry.
Pros
- Very low dealing fees
- Wide market range
- Direct market access
- Complex order types
Cons
- Customer services can be slow
- No financial spread betting
-
Pricing
(5)
-
Market Access
(5)
-
Apps & Platform
(5)
-
Customer Service
(4)
-
Research & Analysis
(5)
Overall
4.8What is a businses investing account?
Business investing account are simliar in functionality to personal investing accounts but is specifically designed for businesses to manage and grow their investment assets.
Corporate investing accounts allow businesses to invest their surplus funds in various financial instruments such as stocks, bonds, mutual funds, and other securities. The primary goal is to generate returns on idle cash or to build reserves for future business needs.
Pros & Cons Of Business Investing Accounts
Here is a round-up of the advantages and disadvantages of your business using a corporate investment account:
Pros
- Capital Growth: Your businesses excess cash can be invested in the stock market and potentially increase in value
- Hedging: You can use investment tools to hedge against currency exposure and regional growth/decline
- FSCS protection: Business accounts in the UK still get FSCS protection up to £85,000
Cons
- Risky: If the market moves against you, your company can lose money
- Access: When your company money is invested, it can take time to get it back if you need it urgently
- Fees: If you are only investing a small amount and choose the wrong account, your company funds can be eaten away in fees
What can companies invest in with a business investing account?
Business investment accounts generally have access to the same types of investments as personal investment accounts. In some circumstances they can also access ghigher risk types of investments like corporate bonds or illiquid off exchange assets, but only if the company directors qualify.
Here are the main things business can invest in:
- Stocks: Public companies traded on stock exchanges like the LSE or NYSE
- Bonds: Essentially IOUs from governments or companies that generate income through interest coupon payments
- Funds: Investment trusts or investment funds managed by professional investment managers.
- ETFs (Exchange-Traded Funds): Funds that trade on stock exchanges, representing a sector, commoditity, currency or diversified portfolio.
- Money Market Instruments: Short-term, lower-risk investments that pay interest on cash.
What different types of account can businesses invest with?
Account Types:
- Stock Brokerage Accounts: For trading and holding various types of investments like stocks, bonds, ETFs or funds.
- Business Savings Accounts: For getting paid interest on cash with a focus on liquidity and safety, although sometimes to get the best interest rates there is a time limit
- Treasury Management Accounts: For managing cash flow and short-term investments.
How to open a business investment account?
If you have a simple business ownership structure you should be able to open a corporate investment account online. However, if there are multiple owners and sibsiduries, you may still have to fill in paperwork and send in certified documentation.
But in general to open a business investing account you should follow these steps:
- Choose a provider: Select a bank or brokerage firm that offers business investment accounts.
- Apply for an Account: Provide necessary documentation, including business registration details, tax identification number, and corporate resolution authorizing the account.
- Set Objectives: Define investment goals, risk tolerance, and asset allocation.
- Manage and Monitor: Regularly review and adjust the investment portfolio to align with business goals and market conditions.
Should businesses open an investing account?
According to Lightyear’s analysis of Bank of England data, businesses in the UK have over half a trillion pounds between them, but £426 billion of it (76%) is sitting in savings or current accounts with an average interest rate of just 1.7%.
According to Lightyear’s analysis of Bank of England data released on the 1st July, businesses hold more cash than credit; the total amount of money held in deposits by private businesses in the UK has been rising since 2008 (when reporting started) – with a spike since COVID – and is continuing to trend upwards. It overtook the amount lent to businesses in 2017. The recent release of May’s figures reveals that businesses now hold £562 billion in deposits, vs £449 billion in credit.
But, whilst businesses have over half a trillion pounds that could be put to work, £426 billion of it (76%) is sitting in savings or current accounts with an average interest rate of just 1.7%
⚠️ FCA Regulation
All Business Investment Accounts that operate in the UK must be regulated by the FCA. The FCA is the Financial Conduct Authority and is responsible for ensuring that UK GIAs are properly capitalised, treat customers fairly and have sufficient compliance systems in place. We only feature Corporate Investment Accounts that are regulated by the FCA and where your businesses funds are protected by the Financial Services Compensation Scheme (FSCS).